Press Release
August 21, 2009

Importation will not address RP's food security woes
ANGARA URGING LONG TERM AGRI INVESTMENT

Senator Edgardo J. Angara today renewed his calls for long-term agri investment in the form of irrigation and post-harvest facilities amid reports that a new deal for importation of millions of tons of rice was signed between foreign countries and Philippine government.

"We are spending billions of resources which otherwise could be allocated to long-term investments to boost our agricultural productivity. Our failure to initiate a long-term and focused effort to boost agricultural productivity could result to more poverty and widespread hunger," said Angara who is a former Secretary of the Department of Agriculture (DA) from 1999-2001.

He added, "Importation will not address our RP's long term food security concerns. Yes, it can help boost our buffer stock but for how long? The key is we need to focus our resources towards long term Agri investments in the form of post harvest facilities, infrastructures and research.

Angara noted that the country has continually faced the problem of high food cost, worse, it has the highest food prices among the ASEAN countries. He said that this spells bad news, especially "during these tough times with the credit crunch already pinching us all."

There are reports that the Philippines will import and buy at least one million tons of rice. There are, however, conflicting data from sources on how much rice would be imported by the Philippines. Two sources cited the figure 1.5 million tons, while a third trader said that 1 M tons of rice would be imported..

Meanwhile, Bureau of Agricultural Statistics (BAS) showed that Philippine rice stocks rose as palay harvests peaked, assuring the country's rice supply for the first quarter. According to BAS figures, total rice stocks were estimated at 2.954 million metric tons (MMT), enough to supply the national requirement for 89 days.

Filipinos consume about 33,000 MT of rice daily.

NFA maintains a 15 day - buffer stocks at any time of the year, except during the lean months of July to September when stocks should be good for at least 30 days.

During the rice crisis in the first half 2008, inventories in NFA warehouses dipped to eight-day stocks.

Thus, Angara prodded the government to ensure RP's food security through long term Agri investments.

Asian Development Bank (ADB) emphasized the need for wide-scale structural reform in the agriculture sector to prevent future food price surges. Food and Agriculture Organization, a specialised agency of UN that leads international efforts to defeat hunger, said the higher food prices accounts for the increase in global hunger, from 75 million to about 925 million worldwide.

International Rice Research Institute, the world's leading rice research and training center which is based in the Philippines, have called on governments to reinvest in agriculture. Investments should be funneled to research geared towards strengthening agricultural research, infrastructure development, training and education of agricultural scientists.

Angara said that genuine investments in the agriculture sector should include rehabilitation of irrigation facilities and provision of post-harvest facilities. Rehabilitation of inadequate irrigation systems in 400,000-hectares of land could yield additional 2 million tons of rice, while better post-harvest facilities could help save 15% of production losses. This could achieve not only higher agricultural productivity but also rural poverty by providing jobs to many poor farmers.

"The bottom is not yet hit and we may see more joblessness and more people falling below the poverty line. And that's why we crafted the 2009 budget to act as a crucial cushion. We must spend these precious limited resources and put it in to good use so that we will be providing our people with some cushion and safety net."

Angara authored significant legislations in agriculture including the Agriculture Fisheries and Modernization Act (AFMA), a master-plan for agricultural modernization which other countries in Southeast Asia have adopted.

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